The Fair Tax is fine, EXCEPT for one part: the Prebate. The Prebate is a “negative tax” (i.e., a welfare payment) that Congress gets to set. I don’t want politicians in the tax determination at ANY stage. If you do, you’re going end up with the same mess you have now. Can the Fair Tax and go with a Flat Tax of 17%. If you truly have a flat tax, you wouldn’t even need to file a tax return since all revenue sources would withhold 17%.
I tend to agree. I understand why the authors of the Fair Tax put the prebate in there, but it sort of muddies the whole 'fairness' aspect of the plan.
If you look to statewide sales taxes as a model, they affect everyone in those states equally. There are no concessions or exemptions for any income class, besides the fact that basic foodstuffs are non-taxable. That obviously benefits the poor and lower classes in a very direct say. Not so much for the wealthy.
Still, it's a better means of funding a government than taxing (penalizing) wages, production, and investment.
Sadly, most states also levy an income tax on their residents, which is just wrong.